ALLCARGO BUY WITH TRENDLINE + HEAD & SHOULDER BreakoutProvided trade details in chart for NSE:ALLCARGO .
BUY AT 57 on breakout Target is 63.5 with SL at 50.5
Allcargobuy
ALLCARGO - A long term viewThe stock has closed at a price of 391.65 which is just a fraction short of moving above all important EMA and make it technically bullish.
Fundamentals of the company have significantly improved which is a good sign.
Since the EMA crossover in the month of August we have seen the price hit a fresh high of 452 levels.
During this rise we have witnessed a pullback at the levels of 328.
Current levels are showing signs of another pull back and if we have prices moving or closing above 394 we could see the levels of 452 being hit once again.
There could be some resistance at around 413 levels.
The projected growth for logistics sector is around 15% which is currently at 10.5%(approx.)
So keeping a stop loss at around 375 one can go long in this counter above 394 for a target of 452 on a short term basis.
From a long term point of view 600 levels look a decent shot.
Stock about to breakout - Allcargo LogisticsThe stock is about to breakout from a big resistance from December 2015. The price tried to cross the resistance several times but was unable to do so. This time the volume has been rising as seen in the chart so there seems to be a very possible chance of a breakout.
Note - This is not a recommendation, it is just for education purposes. Trade at your own risk.
Ideal setup for swing trade with multiple buy signals - AlcargoRead the chart from left to right for a clear understanding.
Stock: Allcargo
Trade type – Swing
Buy level: 348.10 (above breakout candle)
SL: 318.75 (below the breakout candle)
Target: 398
Risk/Reward ratio: 1.7
The setup uses price action and two indicators – RSI & MACD for confirmation of the signal.
Chart formed a Gap on 02nd November. Gaps are formed due to strong buying/selling interest. These gaps are considered to act as strong support levels on the chart.
Rationale behind the bullish view:
- Price recently took support at the gap range and reversed its direction and started making higher highs and higher lows.
- The latest Strong green candle accompanied by good volumes broke out above the previous high.
- Price making lower lows but RSI making higher lows. This is a positive divergence indicating buying interest
- RSI above 55 and trading above its EMA indicates buying strength.
- MACD crossed over the signal line confirming the trend.
Taking the trade:
- The buy level is slightly above the breakout candle. The buy trade can be executed on an hourly timeframe if the price sustains above the breakout candle high.
- If the trade works out as expected, Although the target and SL are fixed in this trade, both should be shifted up when the price makes a higher high and higher low.
- Strict stop loss should always be followed for risk management.
This is not a buy/sell recommendation. I'm posting my analysis here to track it and to learn from the community.
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